Moving abroad does not necessarily remove you from Japanese income taxation.The dividing line is whether you are a resident.For that determination,there is no mechanical day-count threshold such as 183 days.。
Statutory definition
Article 2(1)(iii) of the Income Tax Act.
resident In Japan,Addressan individual having a domicile or continuously havingresidence for at least one yearup to the present is a resident.
Item (v) of the same paragraph.
Non-resident A nonresident is an individual other than a resident.
The only statutory time criterion is continuousresidence for at least one year.The 183-day rule concerns tax treaty a separate treaty exemption for short-term visitors, not resident status.
| Distinction | Provision | Test |
|---|---|---|
| resident | Article 2(1)(iii) of the Income Tax Act | In Japan,AddressHaving a domicile,oror continuously up to the present,a residence for at least one yeara de facto control relationship |
| Nonpermanent residents: | Article 2(1)(iv) of the Income Tax Act | Among residents,a person without Japanese nationalitywhose total period of domicile or residence in Japan during the preceding ten years isfive years or less |
| Non-resident | Article 2(1)(v) of the Income Tax Act | An individual other than a resident |
Nonpermanent resident status requires not having Japanese nationality.Japanese nationals cannot be nonpermanent residents.
What is domicile? The Income Tax Act does not define it
The Income Tax Act has no definition of domicile. The definition appears inCivil CodeIt is.
Article 22 of the Civil Code, Domicile: Each person'sprincipal base of livingis their domicile.
Tax law borrows this Civil Code concept.It depends on actual living circumstances, not registrations or filings.Removing your resident registration is only one factor.
Presumptions operate in both directions
Article 3(2) of the Income Tax Act delegates the matter to Cabinet Order, which provides two domicile presumptions.They cover both moving into and moving out of Japan.
Article 14(1) of the Income Tax Order: presumption of domicile in Japan
Where an individual who begins living in Japan meets either of the following conditions,they are presumed to have a domicile in Japan.。
(i) The person has, in Japan,an occupation ordinarily requiring continuous residence for at least one year.That occupation satisfies the condition.
(ii) The person hasJapanese nationality,and, considering circumstances such as having in Japana spouse or other relatives sharing a livelihood,and other circumstances concerningoccupation, assets, and similar matters,facts are sufficient to infer that the person will continuously live in Japan for at least one year.
Article 15(1) of the Income Tax Order: presumption of no domicile in Japan
Where an individual who begins living abroad meets either of the following conditions,they are presumed not to have a domicile in Japan.。
(i) The person hasan occupation abroad ordinarily requiring continuous residence there for at least one year.That occupation satisfies the condition.
(ii) The person hasThe person has foreign nationality or permission under that foreign country's law to reside there permanently,and, considering the absence of a spouse or other relatives sharing a livelihood in Japan and other circumstances concerning occupation and assets in Japan,there are no facts sufficient to infer that they will return and reside mainly in Japan.That is the condition.
The entry condition in Article 15(ii) is foreign nationality or permanent residence permission in that foreign country.The two are joined by “or.” A Japanese national with permanent residence permission in the destination meets the first requirement of item (ii). Someone with neither must rely on item (i), the occupation test.
Item (i) concerns an occupation.It is not about tourism or a long stay alone.
Both Articles also have a paragraph (2).The presumption for the individual extends to a spouse sharing a livelihood and other dependent relatives.However, Article 14(2) applies only if the familylives in Japan,and Article 15(2) only if itlives abroad.The family's location affectsthe individual's owndetermination through paragraph (1)(ii), not paragraph (2).
The scope of taxable income changes
Article 7(1) of the Income Tax Act.
| Distinction | Taxable income |
|---|---|
| Residents other than nonpermanent residents | All income(whether domestic or foreign) |
| Nonpermanent residents: | Foreign source income:income other than that category,and foreign source incomepaid in Japan or remitted from abroad |
| Non-resident | Depending on the nonresident category listed in Article 164(1),the relevant category determinesincome specified in the items of that paragraph and paragraph (2).domestic source income |
“Foreign source income” here refers to Article 95(1), andthe parenthesis includes income prescribed by Cabinet Order as gains from transfers of securities located abroadunder Article 17 of the Income Tax Order, Scope of Nonpermanent Residents' Taxable Income.Treatment of foreign share gains for nonpermanent residents cannot be determined without reading this parenthesis.
For a resident, worldwide income is subject to Japanese tax.That is why the distinction matters.
Public officials are residents even without a Japanese domicile, subject to exceptions
Article 3(1) of the Income Tax Act.
National or local public officials,excluding those without Japanese nationality and other persons prescribed by Cabinet Order,are deemed to have a domicile in Japan even while they have none,for purposes of this Act, excluding Articles 10, exemption for interest on small deposits of persons with disabilities and others; 15, place of tax payment; and 16, special rules for that place.
“Other persons prescribed by Cabinet Order” are specified in Article 13 of the Income Tax Order.
Article 13: Persons Excluded from Public Officials Deemed Domiciled in Japan The persons prescribed under Article 3(1) areJapanese nationals actually living abroad who are considered to reside there permanently.That is its role.
The exclusion is not limited to foreign-national officials.Japanese nationals actually living abroad and considered permanent residents there are also excluded from the deeming rule. Private-sector overseas assignments are not subject to this rule in the first place.
Points that require care in practice
- Does removing resident registration make me a nonresident?Domicile is determined by your principal base of living. Registration is only one factor.
- What if I leave for an expected one-year assignment but return early?The original nature of the occupation ordinarily requiring the stay is examined.
- What if I move alone and leave my family in Japan?Family location is an express factor under Articles 14(ii) and 15(ii) of the Order. Article 15(i), the occupation test, has no family element itself, but family matters in an overall assessment where the presumption does not apply.
- What if I keep a home in Japan?It is considered among the circumstances concerning assets.
- What if the other country also treats me as resident?You become dual resident, and the treaty's tie-breaker rules resolve treaty residence.
- Which side counts the departure and arrival dates?That concerns calculation of the residence period.
- Is domicile for inheritance and gift tax the same as for income tax?They are separate laws. The same word is applied in different contexts.
The tax effect of relocation depends on the principal base of living, not merely day counts.Presumptions apply both to departures and arrivals. Planning occupation, family, and assets while considering relocation can affect the outcome. Consult us before moving.
Legal basis
- Article 2(1)(iii) of the Income Tax Act (Residents), item (iv) (Nonpermanent Residents), and item (v) (Nonresidents)
- Article 3(1) and (2) of the Income Tax Act (Classification of Residents and Nonresidents)
- Article 7(1) and (2) of the Income Tax Act (Scope of Taxable Income)
- Article 13 of the Income Tax Order (Persons Excluded from Public Officials Deemed Domiciled in Japan)
- Article 14 of the Income Tax Order (Presumption of Domicile in Japan)
- Article 15 of the Income Tax Order (Presumption of No Domicile in Japan)
- Article 17 of the Income Tax Order (Scope of Nonpermanent Residents' Taxable Income)
- Article 22 of the Civil Code (Domicile)
Individual determinations require confirmation of actual living circumstances.
This article is a general commentary based on laws and regulations as of August 31, 2026. Please obtain advice on your individual circumstances before taking action.
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